CITY COUNCIL STAFF REPORT
DATE: JUNE 10, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 2 (24P168) WITH CVL ECONOMICS FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES –
IMPLEMENTATION ACTIVATION, CODE AND REGULATORY REVIEW
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:
Since adoption of the Palm Springs Economic Development Strategic Framework (EDSF) on November 24, 2025, staff has worked with the City Council Economic Development Subcommittee and CVL Economics to refine an implementation approach, including identification and prioritization of activation priorities necessary to translate the framework into execution.
This action will approve Amendment No. 2 to Agreement No. 24P168 with CVL Economics LLC, in the amount of $170,250 for a revised contract amount not to exceed $592,830, to provide additional economic development services for implementation activation, code and regulatory review.
RECOMMENDATION:
1) Approve Amendment No. 2 (Attachment A) with CVL Economics LLC for Economic Development Services including Implementation Activation, Code and Regulatory Review for an additional amount of $170,250 and a revised contract amount not to exceed $592,830;
2) Authorize the City Manager and City Attorney to make non-substantive changes to the document and execute the contract.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure Form (Attachment B) CVL Economics LLC is registered in the state of California.
City Council Staff Report
June 10, 2026 -- Page 2
Amendment No. 2 (24P168) with CVL Economics
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3 BACKGROUND:
The EDSF established a comprehensive set of principles, initiatives, and over ninety action items intended to guide economic development over the next decade.
Recognizing the scale of the work program, the implementation strategy introduced a set of activation priorities designed to accelerate execution and establish foundational systems necessary to support long-term outcomes.
These activation priorities include:
Convention Center (Underway)
Code and Regulatory Review
Business Process Audit
Economic Technology Hub
Fiscal Toolkit (Hotel TOT Incentive Updated)
Business District Development (7 Districts Established – Arenas, Smoketree, Rim Rock, SODA, Tahquitz, Downtown, Uptown Arts & Design (pending) On June 11, 2025, the City entered into Amendment No. 1 (Attachment C), which approved the addition of $47,500 to provide additional economic development analysis, study and plan implementation services, while EDSF approval was pending, for a revised contract amount not to exceed $422,580.
STAFF ANALYSIS:
Implementation Framework
Implementation of the EDSF is structured so the activation priorities as well as the action items act as a coordinated, parallel effort, rather than a strictly linear process.
Key principles guiding implementation include:
Distributed Execution. Action items identified in the EDSF will be advanced through staff-led initiatives, community partners and working groups, Subcommittee and Council Liaison direction, and ad hoc advisory efforts.
Parallel Progression. While activation priorities provide structure, action items will continue to advance concurrently, rather than waiting for completion of any single priority.
Iterative Development. Outputs from each activation priority will inform and refine others, allowing the City to adapt in real time as implementation progresses. This approach ensures that progress continues across multiple fronts while maintaining focus on high-impact foundational work.
Sequencing of Activation Priorities. The Code and Regulatory Review is being advanced first among the remaining activation priorities because its outputs City Council Staff Report
June 10, 2026 -- Page 3
Amendment No. 2 (24P168) with CVL Economics
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3 directly shape the design and feasibility of the others. Regulatory structure determines what the Business Process Audit can streamline, what tools the Fiscal Toolkit can deploy, what services the Economic Technology Hub can offer, and what development conditions the Business District work must operate within.
Sequencing this review first reduces the risk of building downstream priorities on regulatory assumptions that are ineffective.
Role of CVL Economics
CVL Economics, as the author of the EDSF, is uniquely positioned to:
Maintain continuity between strategy and implementation execution Provide subject matter expertise in economic development policy Facilitate cross-departmental coordination
Deliver implementation-ready work products
The proposed amendment shifts their role from planning to implementation support, with a focus on delivering tangible regulatory outcomes. Retaining the original strategy author for implementation preserves institutional knowledge of the EDSF's analytical foundation and stakeholder context, and avoids the cost and delay of onboarding a new consultant to material CVL Economics already authored.
Scope of Work
The contract term spans twelve months (May 2026–April 2027). June 2026 is reserved for contract execution, kickoff, and mobilization, with substantive work organized across four phases:
Phase 1 – Diagnostic Scan (Jun–Aug 2026): Targeted review of selected Municipal Code provisions, assessment of how regulatory requirements shape the experience of businesses and developers in practice, and stakeholder outreach to surface where processes are working and where they are creating friction. Phase 2 – Barriers Analysis (Aug–Nov 2026): Identification and prioritization of regulatory and procedural barriers by category, economic impact, and feasibility of resolution; alignment of barriers against the adopted EDSF to ensure recommendations are grounded in Council's policy direction. Phase 3 – Recommendations (Nov 2026–Feb 2027): Development of targeted code reforms and process improvements, organized into a clear action typology distinguishing near-term administrative actions, code amendments requiring formal approval, longer-term policy considerations, and process issues for a separate business process audit.
Phase 4 – Synthesis (Feb–Apr 2027): Cross-departmental review to confirm legal feasibility and operational practicality of recommendations, followed by refinement and final documentation for both technical staff and City leadership.
City Council Staff Report
June 10, 2026 -- Page 4
Amendment No. 2 (24P168) with CVL Economics
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3 Three deliverables will be produced upon completion of the engagement:
Regulatory Findings Report: A comprehensive document synthesizing identified barriers, economic impact analysis, and recommendations organized by action type and implementation sequence.
Barrier-to-Solution Matrix: A structured reference document mapping each regulatory barrier to a corresponding recommendation, responsible department, and implementation pathway — serving as an ongoing tracking tool for City staff. Executive Summary for City Leadership: A concise, decision-ready summary of key findings, priority recommendations, and proposed next steps prepared for City leadership and Council.
The outcome will be a prioritized, actionable set of regulatory improvements designed to improve the City's business environment and investment readiness.
ENVIRONMENTAL ASSESSMENT:
This action is not a project under CEQA pursuant to Section 15378(b), as it constitutes organizational and administrative activities that do not result in direct or indirect physical changes to the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This action supports City Council’s Strategic Plan Broad Goal of Economic Development, and directly advances the Economic Development Strategic Framework, particularly:
Principle A: Expand Economic Development Capacity
Principle B: Reinvigorate the Business Climate
FISCAL IMPACT:
On July 25, 2024, City Council approved a Contract Services Agreement (Attachment D) with CVL Economics LLC to provide economic development consulting services in an amount not to exceed $375,080 The Economic Development Strategic Plan portion of the contract totals $123,250. The Airport Economic Impact Study portion of the contract is for $251,830 for a three-year term, with two one-year options to renew at the City’s sole discretion.
Amendment No. 1 increased it by $47,500 to $170,750. Amendment No. 2 will increase it by an additional $170,250, bringing the economic development planning and implementation portion of the overall contract to $341,000.
The Airport Economic Impact Study portion remains unchanged.
City Council Staff Report
June 10, 2026 -- Page 5
Amendment No. 2 (24P168) with CVL Economics
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3 The table below summarizes these figures:
EDSF* Airport EIS** Running Total
Base Contract $ 123,250 $ 251,830 $375,080
Amendment No. 1
(Term extension)
$ 47,500 $0 $422,580
Amendment No. 2
(Implementation)
$ 170,250 $0 $592,830
Subtotal Subtotal Total Updated
Contract Value
$ 341,000 $ 251,830 $592,830
*EDSF is managed by Econ Dev staff and CVL Economics
**Airport EIS is managed by Airport staff and Unison-UCG Funding is available within the FY2026 Economic Development appropriated budget and is consistent with previously discussed programmatic allocations.
This investment is intended to:
Accelerate implementation of Council-adopted strategy
Improve efficiency of future City processes
Support long-term economic growth and revenue generation REVIEWED BY:
Department Director: Wayne Olson
City Manager: Scott Stiles
ATTACHMENTS:
A. Amendment No. 2 to 24P168
B. Public Integrity Disclosure Form
C. Amendment No. 1 to 24P168
D. Original Economic Development Contract Service Agreement (24P168)